A top US central bank official has warned that the Federal Reserve faces a “double danger” from the Iran war and Donald Trump’s tariffs in its attempt to convince the American public it can bring inflation back under control.
The US and Israel’s attacks on Iran have sent prices at US petrol pumps soaring to their highest level in either of Trump’s terms in the White House, while the impact of the administration’s trade policies on consumer goods continues to linger.
Austan Goolsbee, the head of the Chicago Federal Reserve, told the FT that the US central bank was at risk from “a little bit of danger on two fronts” at a time when inflation remained above its 2 per cent goal.
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